Which of the following is NOT a likely market solution to the lemons problem?
A. product certification
B. average cost pricing
C. industry standard
D. product warranty
Answer: B
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A straight-line demand curve along which the price elasticity of demand equals 0 is one that
A) forms a 45 degree angle with the vertical axis. B) forms a 60 degree angle with the horizontal axis. C) is vertical. D) is horizontal.
All straight-line demand curves have the same elasticity value since the slope is constant.
Answer the following statement true (T) or false (F)
If the market price is above a firm's average cost at the quantity produced
A) the firm operates and makes a profit. B) the firm operates and make zero economic profit. C) the market price of the firm's inputs will rise. D) total profit is maximized.
A nation's production possibilities curve [PPC] will shift outward if its workers receive better training
a. True b. False Indicate whether the statement is true or false